Antidumping Charges Against China: A Comprehensive Analysis Of Proponents, Opponents, And Its Impact On U.S. Companies

Abstract

Few nations have changed as fast—or as Dramatically—as China has since the 1970s. The world’s most populous nation has radically liberalized its economy and gone from producing low-quality and simple export to sophisticated high- technology goods, while nurturing a vibrant private sector and attracting nearly $500 billion in foreign direct investment (FDI). China’s total exports grew eightfold—to over $380 billion—between 1990 and 2003. China’s share of global exports will reach 6 percent in 2003, compared to 3.9 percent in 2000. The U.S. has lost about 2.6 million manufacturing jobs since 2001. While private economists say that most of he job losses reflected improved productivity at U.S. factories, many in Congress and within industry say China blame China. China’s soaring economy has turned it into manufacturing juggernaut that maintains the largest trade surplus of many nations, including the U.S. U.S. law provides for the protection of American manufacturers form unfair foreign trade practices. If U.S. companies believe that foreign competitors are dumping merchandise in the U.S. or are being subsidized by foreign governments, they may file for relief with the U.S. Department of Commerce’s International Trade Administration and the U.S. Trade Commission.  Antidumping levies duties on goods dumped on the U.S. market. One of the most contested issues is whether U.S. trade laws, in particular the antidumping laws, should be open to negotiation. It should for the benefits of U.S. customers and U.S. businesses.  This research will focus on dumping charges against China and evaluate pros and cons of U.S. antidumping laws against foreign companies and its impact on U.S. consumers and businesses.